Organisations are increasingly doing e-business using information andcommunication technologies and the internet. This study explores the uptake of aparticular form of e-business that of E-procurement. This chapter focuses on the use of electronic procurement strategies in the fast moving consumer goods retail sector. It highlights the background of the study, inclusive of the objectives, problem statement, assumptions and limitations to the study, justification and scope. It also presents operational definitions used in the study.
2.1 Back ground of the study
Electronic procurement is widely believed to have potential to transform the marketplace by availing opportunities for businesses to trade seamlessly across geographical boundaries. According to Baily (2008) e-procurement and supplier exchange is the business to business (B2B) or business to consumer (B2C) or business to government (B2G) purchase and sale of supplies, work, and services through the internet as well as other information and networking systems, such as electronic data interchange and enterprise resource planning.
E-procurement was one of the first B2B applications that were successful in the 1990s when purchasing in those days was a paper world.It could take weeks to get a purchase approved and then there was the manual reoccurring process at the supplier end that took place before a despatch was done, followed by the paper chase called accounts payable.By automatingretail activities and introduction of e-procurement the requisition and approval process, approval time and effort was reduced.Suppliers can now receive orders directly into their sales order processing system.
E-procurement increased globally in the second half of 1999, when online auctions and product catalogues became commonplace on the Internet and continued to expand. The convenience online buying existing, even in its infancy, led e-procurement to...